In Latest Forecast ARA Expects Rental Revenue to Hit $59.3 Billion in 2021
The American Rental Association expects equipment rental industry revenue to grow consistent with a compound annual growth rate between 2017 and 2021 of 4.7 percent in the United States, resulting in total revenue of $59.3 billion in 2021. According to the ARA Rental Market Monitor five-year forecast updated in early November, total rental revenue will grow by 4.5 percent in 2018 to reach $51.5 billion, 5.5 percent in 2019, 4.9 percent in 2020 and 4.1 percent in 2021.
The November forecast is very close to the last forecast in August, with only minor fluctuations up or down in expected growth rates each year.
Equipment rental revenue is also expected to show consistent growth in Canada, ARA said, reaching $5.3 billion in 2018 with growth rates of 4.1 percent in 2019, 5 percent in 2020 and 4.8 percent in 2021 to total $6.11 billion.
“This is a strong forecast, showing the equipment rental industry will continue to consistently grow over the next five years, without factoring in any possible impact from tax reform or infrastructure spending,” said John McClelland, ARA’s vice president for government affairs and chief economist. “People continue to realize the benefits of renting and how it can positively impact the bottom line. As a result, the equipment rental industry continues to outperform the general economy as well as the industries it serves.”
The ARA Rental Market Monitor features data and analysis from forecasting firm IHS Markit, which said construction/industrial equipment rental will show a 4.1-percent CAGR from 2017 to 2021, reaching $40.5 billion in 2021. General tool is expected to post a 5.7 percent CAGR during the forecast period, reaching $15 billion in 2021. Party and event rental is expected to have a 6.3 percent CAGR and surpass $3.9 billion in revenue in 2021.
Investment in rental equipment is projected to increase by 4 percent in 2018, 8.4 percent in 2019, 2.6 percent in 2020 and 1.2 percent in 2021, surpassing $15 billion that year.
